What is your net profit per share from this position

Assignment Help Financial Management

Reference no: EM131552381

You sell a call option on GE stock with a strike price of $35 for a premium of $1, and also sell a put option with a strike price of $20 for a premium of $0.8. If at maturity the stock is trading at $26, what is your net profit per share from this position?

Reference no: EM131552381

Questions Cloud

Creation of portfolio is very important to diversification : The creation of a portfolio is very important to diversification to anyone including corporations.

Beating the benchmarks is important : Beating the benchmarks is important.

Calculate the npv and irr for the project on after-tax basis : Calculate the NPV and IRR for the project on after-tax basis. How are property managers potentially able to enhance value?

Target debt–equity ratio and cost of equity : Tulloch Manufacturing has a target debt–equity ratio of .61. Its cost of equity is 13.4 percent, what is the company’s WACC?

What is your net profit per share from this position : what is your net profit per share from this position?

What is company cost of common equity : Patterns Corporation has a target capital structure of 35 percent debt and 65 percent common equity, What is the company’s cost of common equity.

What is the company cost of common equity : What is the company’s cost of common equity if all of its equity comes from retained earnings?

Some of the challenges implementing the framework : What are some of the challenges implementing the framework.

Invest in? risk-free technology that require upfront payment : You can invest in a? risk-free technology that requires an upfront payment of $1.16 million and will provide a perpetual annual cash flow of $118,000.

User Account

All Pages